As we reported on the 6th of June 2012 (please click here to read that article), Brazil did in fact proceed to request consultations with South Africa. On 21 June 2012 the delegation of Brazil formally requested consultations with South Africa in accordance with the WTO legal framework.

Brazil is seeking to resolve a dispute in connection with South Africa's preliminary determination and the imposition of provisional anti-dumping duties on frozen meat of fowls, both the whole bird and boneless cuts, that are imported from or originates in Brazil.

According to the official WTO document (please click here to download it), Brazil alleges that the preliminary determination and the imposition of the provisional anti-dumping duties by South Africa is inconsistent with numerous provisions of the WTO Agreement on Anti-dumping Duties. It would seem as if Brazil mainly alleges that South Africa incorrectly determined:

• the actual margin of dumping applicable to the product under investigation,
• the actual injury suffered by the South Africa domestic industry,
• the actual composition of the South African domestic industry,
• the decision to initiate the investigation into the alleged dumped subject products, and
• the evidence used by South Africa in making its determination.

The aim of the request for consultations is to amicably settle the dispute between South Africa and Brazil. This is of particular relevance as both countries are members of BRICS. Should the parties be unable to settle the dispute within 60 days from the request for consultations, a WTO Panel may be established that will adjudicate the dispute. If the matter progresses to this stage it will be the first time that South Africa participates in a WTO dispute. Prior to 21 June 2012 Brazil also alleged that South Africa did not respond to informal negotiations on this dispute. If South Africa fails to respond to this request for consultations within 10 days from the date of such request, Brazil may fast track the process and immediately request that a WTO Panel be established to settle the dispute.

To read Rian's interview in Farmers Weekly, please click here.

Rian Geldenhuys
© Trade Law Chambers 2012